Analyzing Performance of Banks & Predicting Bank Failure

This paper evaluates the performance of 6 Indian banks by using CAMEL method. HDFC bank is rated 1st and performing well among its peers, on the other hand Bank of India is rated 3rd and needs attention of supervisors. Discriminant analysis is used in this paper and finds out the important ratios which help in predicting financially unstable banks 1 year prior to merger.